“The most beautiful makeup of a woman is passion. But cosmetics are easier to buy,” Yves Saint Laurent, fashion designer, once said. Laurent could not have been more correct. In many ways 2023 had more to offer – be it adopting the Korean beauty regime, getting in-depth skincare or experimenting with makeovers. But all that glitter failed to turn into gold. From what it seems all those likes on social media, did not materialise in terms of revenue. Yet experts believe not all is lost. “The beauty and skincare market is attaining a level-playing ground in terms of need, want, desire and aspiration. Indian companies have accepted Korea, the land of K-Pop, to be big disruptors. India today learns from Korea in this space. Thinking of India and looking within its boundaries for solutions is a paradigm that has been broken. This is the big breaking and breaking story of 2023,” Harish Bijoor, founder, Harish Bijoor Consults, told BrandWagon Online.
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The Indian cosmetics products market size is estimated at $ 1.35 billion in 2023 and is further projected to reach $ 2.27 million by 2028, registering a compound annual growth rate (CAGR) of 10.91% during the forecast period (2023-2028), as per marketing intelligence platform, Mordor Intelligence.
Is the growth game on?
To be sure, customers have continued to purchase new-age brands including Mars Cosmetics, Pilgrim, Recode Studio, Wow Skin Science, among others. For instance, Pilgrims clocked 35X increase in revenue from operations of Rs 76.46 crore in FY23, from Rs 16.89 crore during the same period in the corresponding year, as per regulatory files accessed by business intelligence platform, Tofler. The company’s net loss stood at Rs 23.06 crore in FY23.
Interestingly, Wow Skin Science’s revenue from operations declined 24.17% from Rs 34,037 lakh in FY22 to Rs 25,811 lakh in FY23. The company’s net loss narrowed 56.93% to Rs 213 crore in FY23 from Rs 135 crore in FY22. The company’s advertising spends increased 5.58% to Rs 199 crore in FY23 from Rs 188 crore in FY22. Another new-age player, Recode Studio’s revenue from operations grew 83.14% to Rs 22.38 crore in FY23 from Rs 12.22 crore in FY22. “The increase in revenue and sales has increased the importance of our high-quality products and encouraged us to successfully meet the expanding market demands. It not only displays our dedication to quality but also prepares us for future success,” Dheeraj Bansal, co-founder, Recode Studios, said.
Pilgrims claims that its products are targetted at Gen-Z especially, for its new ranges including Spanish Rosemary and Biotin range, Lux Hydration Range. Prices of these newly launched products typically range between Rs 300-700. “Gen-Zs are the driving force of our beauty revolution, embodying a spirit that’s vibrant, discerning and always ahead of the curve. These trendsetters don’t just seek products; they demand experiences that align with their values of efficiency, trendiness and affordability,” Gagandeep Makker, co-founder, Pilgrim, added.
Furthermore, Recode Studio expanded its collection through the addition of a new product range which includes a contour palette, new makeup brushes, a blusher palette and lipsticks. Additionally, Wow Skin Science introduced seven new products between the price range of Rs 199-519 including rose water, lip balm, perfume, among others. Meanwhile, Mars Cosmetics too ramped up its product offering with the introduction of special editions of beauty products which includes Plush Velvet Lipstick, Matte-on Compact, Cosmo Candy Pouch, Lip Lollies Hydrating Lip Balm. The company claims that it has used strategic awareness practices which have had a substantial impact on the sell-out rate (SOR) on e-commerce platforms. “We also focus on quick deliveries through services such as Blinkit and Zepto. Although our campaigns have increased awareness and accessibility, MARS Cosmetics’ overall popularity and financial performance have been greatly influenced by our comprehensive advertising strategy which uses both traditional and digital media,” Anmol Sahai Mathur, CMO, MARS Cosmetics, said.
Expedite expectations!
Industry experts opine that the year has been transformative for the beauty and cosmetic industry. For Dheeraj Bansal, co-founder, Recode Studios, the aim is to earn Rs 50 crore by the end of this fiscal. . The company further claimed that it will continue to focus on affordability.
To be sure, tier-2 and tier-3 cities have played a crucial role in driving sales of these new-age brands. While affordability is one of the reasons, another is the fact that premium brands are yet to enter. “The year 2023 has been phenomenal for us in terms of demand. We have seen a sharp rise in user interest and demand compared to 2022, due to our natural, toxin-free, and sustainable skin and hair care products striking a chord with consumers,” Vanda Ferrao, chief marketing officer, WOW Skin Science, said.
Interestingly, much of the rise in sales and growth is driven by social media platforms such as Instagram. Industry players believe that the growth story will continue next year too. “The market for MARS cosmetics has significantly increased as a result of this combination of awareness, smart planning, and an encouraging spirit of community,” Mathur added.
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